He said the technology will offer in-car Internet connections that can be even faster than the high-speed connections currently available in most homes and offices.

When 3G, the previous standard, was introduced a decade ago it paved the way for a number of in-car applications, especially navigation systems. But it lacked the bandwidth required for many data-intensive infotainment apps, such as video-on-demand.

But 4G LTE, which is up to 10 times faster than 3G, will allow carmakers to offer apps that, until now, could only be used at home with cable or phone-line connections to the Internet.

"Cellular technologies such as 2G and 3G are adequate in providing the traditional navigation and emergency calling applications typically associated with a connected car," Josh Builta, an analyst for IHS Automotive, said. "However, LTE can deliver infotainment types of applications far better than these older technologies."

IHS Automotive forecasts that the number of LTE-connected cars worldwide will grow from 1.2 million in 2015 to 16 million in 2017.

More in-car options

LTE is expected to improve in-car e-mail access, Internet connections, weather and traffic updates, video-conferencing and video streaming. The bandwidth can also be shared through in-car devices that serve as Wi-Fi hotspots, allowing several users in the vehicle to access the Internet.

The increased download speed improves access to a range of existing services of use to a motorist, such as Google Earth, Google Street View and online traffic information, as well as Web-based services such as Facebook and Twitter.

Europe will adopt 4G LTE much faster than the United States, mainly because of differences in licensing agreements. In Europe, automakers can accommodate LTE-enabled mobile phones from any telecommunications provider; in the United States, automakers have to enter into licensing agreements with each signal carrier.

German luxury carmakers are leading the way by introducing the first 4G LTE-compatible production models in high volumes. Audi began to offer an LTE connectivity option in its Audi S3 Sportback in July and plans to offer the option in A3 models in Europe in November and in the United States next year.

In the S3 and A3, the LTE connection is made by inserting an LTE SIM card, purchased from a mobile phone provider, into the car's infotainment console. A SIM card carries the user's identity and phone number.

Applications that run on the console, such as Google Earth, and online traffic information, run at LTE speeds. The console also becomes a mobile Wi-Fi access point.

Although Mercedes-Benz has not revealed its LTE plans, a spokeswoman said customers already can connect LTE-enabled smartphones to the existing system through the instrument panel console.

Mercedes will have a more ambitious LTE offering in mid-2014. It will include an LTE antenna that will be standard in all models in Europe. The spokeswoman could not share more details about the system or say when Mercedes will offer LTE connectivity in the United States.

This year BMW began offering an optional LTE Wi-Fi hotspot module for all its cars in Europe. The module is activated either through an LTE-enabled SIM card or an LTE smartphone. The module can be removed from the car and used as a Wi-Fi hotspot elsewhere.

In North America, General Motors is expected to offer LTE connectivity for most models in 2015 through its OnStar subsidiary and its partnership with AT&T. It also plans to offer in-car LTE Wi-Fi hotspots.

Ford is expected to configure its Sync system to work with LTE-enabled smartphones but has not disclosed how it will offer the feature.

What price?

Automakers hope customers will be willing to pay for apps that require in-car LTE connections. GM, BMW and Audi have said they expect to offer LTE-enabled data-intensive applications that could be potential revenue sources.

GM CEO Dan Akerson told analysts this year that he expects customers will be willing to pay a premium for advanced OnStar services. He added that faster LTE mobile data connection might allow advertising in the vehicleas well as live streaming media.

OnStar this year displayed a prototype that streamed videos of a parked car to a mobile phone as part of a surveillance app but has not said when it might be available.

While the increased download speed of 4G LTE clearly opens up a range of possibilities, more work is needed to identify how customers will want to pay.

Automakers may seek an upfront fee for LTE connectivity and applications when a car is purchased to limit monthly subscription charges. In the past, GM has struggled with renewal rates for its OnStar service when the first year of free service ended, Builta of IHS Automotive said.

He added: "Paying a monthly bill for LTE is not something consumers will necessarily want to do. Automakers will need to find the right price point for LTE infotainment and decide whether they want to offer them by way of a subscription model or as a one-off payment when customers make a car purchase.